Dallas, Texas 10/15/2013 (Financialstrend) – Greece based NewLead Holdings Ltd (NASDAQ:NEWL) is a shipping company which has a market cap of $14.9 million. The penny stock has been struggling to keep its operations going in the past few quarters. Its shipping operations have almost come to a standstill with its ships being confiscated by lenders towards debt servicing. This has resulted in slowing down of cash flow which is in turn is causing the shipping company to default on further financial obligations. Investors have lost confidence and are moving out in droves further reducing the market cap of the struggling firm.
As of close of business on October 14, the stock was trading at $0.09 per share down 7.3% from its previous day close. NASDAQ on October 4 had already notified NEWL that it had failed to meet the deadline set by NASDAQ listing qualification staff for the stock to regain minimum bid price of $1 per share before October 1. The trading index staff had also advised the shipping firm to seek appoint with the NASDAQ hearing panel before October 9, failing which the stock would be delisted. Typically company stock which fails to attract a minimum bid price set by NASDAQ will be given an opportunity to regroup and present the browser with a plan of action to regain minimum bid price.
If NASDAQ hearings panel is convinced with the revival plan, it will allow the stock to continue trading for a period of time. If the plan seems unfeasible, then Hearings panel might recommend that the stock be delisted. In response to the October 4 intimation, NewLead had publicly expressed its intention to seek a appointment with NASDAQ hearings panel and submit its valuation revival plan. Over the past 6 months, the stock of this ship maker has lost 78% of its market value.A